USAA Real Estate Co. Affiliate Begins Construction on 275,000 SF Dual-Rail Served Distribution Warehouse in Railhead Industrial Park

July 15, 2005 - Fort Worth, TX

Texas-based USAA Real Estate Co. through its affiliate, Zephyr Rail Industrial, L.P., has announced that they are breaking ground on a 275,000 square foot multi-tenant distribution facility. The building is located in Railhead Industrial Park, a 633-acre Master Planned Industrial Park located in North Fort Worth. The development is bisected by North Loop 820 offering many development opportunities immediately north and south of the Freeway.

The new building is a state of the art, ESFR, tilt wall, front load distribution facility and divisible to as small as 70,000 square foot users. It is designed to have 30' clear ceiling height, 40' x 47' column spacing, and ample truck courts of 140-144' deep. Trey Fricke and his team with NAI Stoneleigh Huff Brous McDowell have been engaged to market the property to potential tenants. "We are excited about the opportunity to market this facility. This is a great building in a unique development. With recent single tenant deliveries such as Del Monte and International Paper, this is an excellent multi-tenant option for prospective users in Railhead Park, which has been in existence since 1997. We anticipate the delivery of a multi-tenant opportunity will open the door to a market of mid-size rail users that are often limited to less functional buildings with limited rail service", says Fricke.

Railhead Properties, Inc., under the direction of Abbie Cornell, has been awarded development of the project. Pat Cornell, one of the owners of Zephyr Rail Industrial, L.P. and an expert on the rail advantages of the park, is working together with Trey Fricke on the marketing of the park. Ridgemont Commercial Construction has been awarded the construction of the project. Completion of the project is expected November 2005.

Railhead Park is a rail neutral development with users having a cost advantage in choosing Burlington Northern Santa Fe and Union Pacific rail providers running alternating service times throughout each day. Union Pacific rail lines border the Park to the west and one of Burlington Northern Santa Fe's major NAFTA rail operations yards borders the Park to the east, providing users the opportunity for one-day rail service car switching.

USAA Real Estate Co. has more than $3.5 billion of assets under management and provides acquisition, build-to-suit and development services for corporate and institutional investors. The USAA portfolio consists of office, industrial and hotel properties as well as investments in real estate operating companies. USAA Real Estate is a subsidiary of USAA, which has been serving military families since 1922 and has become one of America's leading financial services companies. The association, well known for its exceptional service, offers its 5.5 million members a comprehensive range of insurance, banking and investment products and services designed to help them meet their financial needs. Headquartered in San Antonio, Texas, with offices throughout the United States and Europe, USAA owns or manages assets of more than $83 billion.